Tax Auctions

Tax auctions are done right on the courthouse steps. Most people miss out on these property tax auctions because they don't know about them or aren't sure how they are done and what is required by the buyer.

When a land or home owner falls behind on their taxes they become delinquent. Most properties are three to five years behind before being auctioned off.

These properties are houses and land that are usually paid for (no mortage), but for some reason taxes were not paid. You, as an investor, can buy them for the back taxes.

After you received your list your real research begins. You want to make sure the title deed belongs to the person who claims the property. Make double sure there are no lein holders. In other words, make sure the property is "Free and Clear" except for the tax lien.

Most of this research can be done at the courthouse. The records are open to the public. The clerk can show you how to look up the information. Make phone calls if you come across any information indicating a lien.


The sales are conducted by the sheriffs department usually but the tax office can tell you how they want payment and etc.

Tax auctions in some states have a period in which the owner can come back, pay the back taxes plus interest and penalties and regain their property. So homestead exemptions and everything needs to be checked out. You of course would get this money! So worst scenario you make interest money.

If you buy property in a state that has this buyback period, don't do any major improvements to the property. You don't get paid back for those.

Most investors rent the property until the waiting period is over, then they can sell or keep renting it out. Most reclaimation periods are six months to two years. Again, check with the tax clerk. You may not have this waiting period in your state.

I know this sounds like a lot of work, but once you learn how to do the research for one property, the rest is a lot easier.

In today's world the internet is becoming more popular. Try typing in your county's name and see what comes up.

More and more counties are starting to list the taxes online. This might save you some time.

Remember, ask for help, and research, research, research.

Some links that might be helpful are listed toward the bottom of this page.

There are many opportunities out there and I hope my information has given you the resources you need to get started, however I would be remiss if I didn't give you this one last resource.

If you' like to know how to make money with tax properties without attending auctions and tax lein sales then read about Rick Dawson.(known as the Deed Grabber)

Is there such a thing as "Free and Clear"? Maybe so, read more here!

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